Author Question: We benefit from trade if we are able to obtain a good from a foreign country by giving up more of ... (Read 95 times)

amal · **on:** Jun 30, 2018

We benefit from trade if we are able to obtain a good from a foreign country by giving up more of other goods than we would have to give up to obtain the good at home.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the United States could produce 1/2 ton of potatoes or 1 ton of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, the country with the comparative advantage in producing wheat is ____ and the country with the absolute advantage in producing potatoes is ____.
a. the United States; the United States
b. the United States; Ireland
c. Ireland; the United States
d. Ireland; Ireland